The current food crisis may be an opportunity to revive Africa's
farming industry, a senior official at the World Bank, which is
doubling agricultural lending to the continent to boost production,
said on Thursday.
Vice-President for Africa Obiageli Ezekwesili said the World Bank
aimed to help countries implement policy and institutional reforms to
boost food production, and to help farmers access research and
information and adopt new technologies.
"This is an awakening for Africa to prioritise agriculture, which used
to be a competitive advantage in the past," she told Reuters on the
sidelines of the World Economic Forum for Africa. "Agriculture is back
on the agenda and with the right kind of public investment ... Africa
stands a chance (of increasing productivity)." The World Bank
announced in March a huge increase in the amount it earmarks for
agricultural loans to Africa, where sub-Saharan states account for 20
of the 36 countries seen as most vulnerable to soaring world food
prices.
"We are doubling lending for Africa from $450 million to $800 million
starting with financial year 2010 and beyond," said Ezekwesili. "We
definitely are not going back to low food prices but with concerted
action we can reverse the trend of the increasing escalation of
prices."
The cost of major food commodities has doubled over the last couple of
years, with rice, corn and wheat at record highs. The Organisation for
Economic Cooperation and Development (OECD) has said it sees prices
retreating from their peaks but still up to 50 per cent higher in the
coming decade.
CHALLENGES
Ezekwesili said African countries in the "most vulnerable" group
should have food support grants for their people but that intervention
had to be targeted so it reached those in need. "Because of the
challenges we sometimes have, some food subsidies can be ineffective,
so we should mark the target group," she said, adding that the
multilateral lender was working with the African Union and the New
Partnership for African Development (NEPAD), aimed at reducing poverty
and promoting good governance on the continent.
"We will use our expertise to support institutions in the agricultural
sector, because a lot of challenges of making agriculture work in
Africa have been about institutional drawbacks and deficiencies,"
Ezekwesili said. Higher food prices have sparked violent protests
across Africa and the International Monetary Fund has said the crisis
could lead to social instability.
Ezekwesili said governments could quell potential unrest by
communicating with the people. "We are in a period of structural
shifts. This is a time that governments must communicate in a very
transparent and honest way about the adjustments citizens have to
make," she said.
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